Message to the Congress Reporting on the National Emergency With Respect
to Libya

Message to the Congress
Reporting on the National Emergency With Respect to Libya

July 30, 1986

To
the Congress of the United States:

1.
On January 7, 1986, in Executive Order No.
12543, I declared a national emergency to deal with the unusual and
extraordinary threat to the national security and foreign policy of the United States posed by the policies
and actions of the Government of Libya. In that order, I prohibited, with
effect from February 1, 1986: (1) the import into the United States of any
goods or services of Libyan origin, except publications and materials imported
for news publications or news broadcast dissemination; (2) the export to Libya
of any goods, technology (including technical data or other information), or
services from the United States, except publications and donations of certain
articles intended to relieve human suffering; (3) transactions by U.S. persons
relating to transportation to or from Libya; transportation to or from the
United States by any Libyan person or Libyan-registered vessel or aircraft; or
the sale in the United States by U.S. or foreign air carriers of transportation
by air that includes any stop in Libya; (4) the purchase by U.S. persons of
goods for export from Libya to any country; and (5) the performance by U.S.
persons of any contract in support of an industrial or other commercial or
governmental project in Libya. I further prohibited, with immediate effect: (6)
the grant or extension of credits or loans by U.S. persons to the Government of
Libya (including government-controlled entities); (7) transactions by U.S.
persons relating to travel by U.S. citizens or permanent resident aliens to
Libya, or activities within Libya, other than for the propose of: (a) effecting
such persons' departure from Libya, (b) performing acts listed in items (1)
through (5) above prior to February 1, 1986, or (c) travel for journalistic
activity by professional journalists. The prohibitions ordered on January 7,
1986, were in addition to existing prohibitions on the importation of Libyan
crude oil and refined petroleum products imposed in Proclamation 4907 of March
10, 1982, and retained in Proclamation 5141 of December 22, 1983, and Executive
Order No. 12538 of November 15, 1985, as well as existing export controls set
forth in the Export Administration Regulations, 15 C.F.R. Part 368 et seq.,
issued pursuant to the Export Administration Act of 1979, as amended.

2.
On January 8, 1986, in Executive Order No. 12544, I augmented the transactional
prohibitions contained in Executive Order No. 12543 and ordered the immediate
blocking of all property and interests in property of the Government of Libya
(including the Central Bank of Libya and other government controlled entities)
then or thereafter located in the United States, or then or thereafter coming
within the possession or control of U.S. persons, including their overseas
branches.

3.
The actions were taken and the declaration of national emergency made pursuant
to the authority vested in me as President by the Constitution and laws of the
United States, including the International Emergency Economic Powers Act (50
U.S.C. 1701 et seq.), the National Emergencies Act (50 U.S.C. 1601 et seq.),
sections 504 and 505 of the International Security and Development Cooperation
Act of 1985 (22 U.S.C. 2349aa - 8 and 9), section 1114 of the Federal Aviation
Act of 1958, as amended (49 U.S.C. 1514), and section 301 of title 3 of the
United States Code. I submitted reports concerning my exercise of these
authorities and transmitted copies of my Executive Orders to the Congress on
January 7 and January 9, 1986, pursuant to section 204(b) of the International
Emergency Economic Powers Act, 50 U.S.C. 1703(b); section 505 of the
International Security and Development Cooperation Act of 1985, 22 U.S.C.
2349aa - 9(c); and section 301 of the National Emergencies Act, 50 U.S.C. 1631.
This report is submitted pursuant to section 401(c) of the National Emergencies
Act, 50 U.S.C. 1641(c); section 204(c) of the International Emergency Economic
Powers Act, 50 U.S.C. 1703(c); and section 505(c) of the International Security
and Development Cooperation Act of 1985, 22 U.S.C. 2349aa - 9(c).

4.
The Office of Foreign Assets Control of the Department of the Treasury, after
consultation with the Secretary of State and other Federal agencies, issued the
Libyan Sanctions Regulations, 31 C.F.R. Part 550, implementing the prohibitions
in Executive Order No. 12543 on January 8, 1986 (51 Fed. Reg. 1354 (January
10, 1986)).
Regulations implementing Executive Order No. 12544 and amending the Libyan Sanctions
Regulations were issued by the Office of Foreign Assets Control on January 14,
1986 (51 Fed. Reg. 2462 (January 16, 1986)).

5.
Further amendments to the Libyan Sanctions Regulations have been issued, as
follows: (a) To avoid disruption to family units, a general license permitting
dependents of Libyan nationals who are U.S. citizens or permanent resident
aliens to travel to, from, and within Libya, and to incur normal living
expenses within Libya, was issued by the Office of Foreign Assets Control on
May 28, 1986, effective January 7, 1986 (51 Fed. Reg. 19751 (June
2, 1986)).
(b) A prohibition against exports from the United States of goods and
technology that the exporter knows or has reason to know are intended
specifically for the manufacture of products in third countries to be used in
the Libyan petroleum or petrochemical industry was issued by the Office of
Foreign Assets Control on June 16, 1986, effective July 7, 1986 (51 Fed. Reg.
22802 (June 23, 1986)). (c) A regulation
requiring U.S. persons with controlled
foreign affiliates to report by August 15, 1986, on their affiliates'
Libyan transactions was issued by the Office of Foreign Assets Control on July
11, 1986,
to enable that office to monitor compliance with the regulations' prohibitions
against U.S. persons transferring
Libyan business to offshore entities (51 Fed. Reg. 25634 (July
15, 1986)).

6.
On January 14, the Office of Export Administration within the Department of
Commerce issued a General Order, effective February 1, 1986, revoking all
authorizations contained in individual and special validated licenses for
direct or indirect export from the United States to Libya if such export is
prohibited by the Libyan Sanctions Regulations (51 Fed. Reg. 2353 (January
16, 1986)).
The General Order also prevented possible dual licensing procedures for
shipments from the United States to Libya by permitting a license
issued by the Treasury Department to serve as authorization under the Export
Administration Regulations for export from the United States. The Department of
Transportation issued Order 86 - 2 - 23 on January
30, 1986,
which prohibits U.S. and foreign air
carriers from selling in the United States any transportation by
air that includes a stop in Libya, and engaging in any
transaction in the United States relating to
transportation to or from Libya. The Order also
prohibited U.S. air carriers from
engaging in transactions anywhere in the world that relate to transportation
services to Libya. The Order was served
on all U.S. and foreign air
carriers.

7.
With this report, I am enclosing a copy of the Treasury Department's Libyan
Sanctions Regulations, with amendments to date, the Commerce Department's
General Order, and the Transportation Department's Order, as discussed above.

8.
In the exercise of its licensing authority under the Libyan Sanctions
Regulations, the Office of Foreign Assets Control issued specific licenses to
five U.S. oil companies and 13
service companies, authorizing them to complete the winding down of their
Libyan operations after the effective dates of the prohibitions in Executive
Order No. 12543. In all cases, the specific licenses were issued to foster the
orderly withdrawal of these companies from Libya in an attempt to avoid
substantial economic windfalls to the Government of Libya through the outright
forfeiture of U.S. assets located in Libya. Each specific license
authorizing an extension of Libyan operations expired on or before June
30, 1986.
Additional specific licenses have been issued on a one-time basis to authorize
routine banking transactions commenced prior to the issuance of Executive Order
No. 12543.

9.
The expenses incurred by the Federal government in the 6-month period from
January through June 1986 that are directly attributable to the exercise of
powers and authorities conferred by the declaration of the Libyan national
emergency are estimated at $1,264,562, of which approximately $1,109,979
represents wage and salary costs for Federal personnel, and approximately
$154,583 represents out-of-pocket expenses for travel. Personnel costs were
largely centered in the Department of the Treasury (particularly in the Office
of Foreign Assets Control, the Customs Service, the Office of the Assistant
Secretary for Enforcement, the Office of the Assistant Secretary for
International Affairs, and the Office of the General Counsel), the Department
of State, the Department of Commerce, the Department of Justice, the Federal
Reserve Board, and the National Security Council.

10.
The policies and actions of the Government of Libya continue to pose an unusual
and extraordinary threat to the national security and foreign policy of the United States. I shall continue to
exercise the powers at my disposal to apply economic sanctions against Libya as
long as these measures are appropriate and will continue to report periodically
to the Congress on significant developments, pursuant to 50 U.S.C. 1703(c).